WASTEWATER DISCHARGE PERMIT

Permit No.: 1 WASTEWATER DISCHARGE PERMIT COMPANY NAME: MAILING ADDRESS: FACILITY ADDRESS: ASSESSOR'S PARCEL NUMBER(S): 7 The above Industrial User is authorized to discharge industrial wastewater to the District's sewer system in compliance with the District Code Title 7, any applicable provisions of Federal or State law or regulation, and in accordance with discharge points(s), effluent limitations, monitoring requirements, and other conditions set forth herein. This permit is granted in accordance with the application filed with the office of the District Engineer, and in conformity with plans, specifications, and other data submitted to the District in support of the above application. Effective Date: Expiration Date: RUSS BATESON Operations Manager

PART I WASTEWATER DISCHARGE LIMITATIONS AND MONITORING REQUIREMENTS The industrial user shall comply with the effluent limitations specified below by: Important Note: Self-monitoring discharge report information shall be submitted on the proper form and to the District by no later than June 30 and December 31 of each year. PARAMETER DAILY MAX. mg/l* SAMPLE FREQUENCY COMPOSITE SAMPLE REQUIRED Cadmium (Total) 0.90 Semi-annual yes Chromium (Total) 9.0 Semi-annual yes Copper (Total) 0.75 Semi-annual yes Lead (Total) 2.0 Semi-annual yes Nickel (Total) 1.25 Semi-annual yes Silver (Total) 0.50 Semi-annual yes Zinc (Total) 13.25 Semi-annual yes Cyanide (Total) Instantaneous Limit 0.05 Semi-annual Grab Total Suspended Solids ph, units 1000 Semi-annual yes Instantaneous Limit 5.0 to 10.0 Semi-annual BOD 5 --- Semi-annual yes *Unless otherwise noted Grab SAMPLE POINT: Samples are collected from the hydrosaw water discharge after the discharge has progressed through the filter system and prior to reaching the sanitary sewer. CAUTION: Violation of District Sewer Use Codes or the limitations and requirements of this permit will be enforced in accordance with the attached Enforcement Response Plan. Samples must be collected and analyzed using EPA Standard Methods 40CFR Part 136.

PART II SPECIAL CONDITIONS/COMPLIANCE SCHEDULES 1. The User has elected to develop a Toxic Organic Management Plan (TOMP); therefore, it will be developed within 30 days from the effective date of this permit. The plan will be submitted to the District for review and approval. Once approved, the Industrial User must comply with the plan and any reporting requirements specified by the District. 2. The Industrial User shall develop, within 30 days of the effective date of this permit, an accidental spill prevention plan to eliminate or minimize the accidental or slug discharge of pollutants into the sewer system, which could have an effect on the City's treatment plant, sludge, or cause the District and City to violate their NPDES permit. 3. In order to meet the wastewater discharge limitations specified in part I, the Industrial User will be required to make in-plant process modifications and install a treatment facility. The following construction schedule shall be adhered to and reports on progress shall be submitted to the District, as outlined in Part III: 1. Investigate in-plant process modifications and end of 1 month pipe treatment options 2. Complete preliminary A & E 1 months 3. Go out to bid 1 months 4. Secure equipment and begin construction 2 months 5. Complete installation 2 months 6. Pretreatment system start-up 2 months 7. Achieve final compliance 3 months 4. Discharge limitations in Part I are local limits derived from the ability of the Wastewater Treatment Facility to treat and/or remove these pollutants. These local limits are stricter than Federal Environmental Protection Agency Categorical standards. The federal categorical standards that apply are: 40CFR Part 433. PART III REPORTING REQUIREMENTS 1. The Industrial User is required to submit to the District self-monitoring reports on the results of its sampling of the pollutants as specified in Part I of this permit. This report shall also contain monthly flows. The TOMP certification statement must be signed and submitted during each reporting period along with the Self Monitoring Report. All information shall be submitted on the Self Monitoring Discharger Report Form (see attached copy). If the Self Monitoring Report is over 5 days late, the industrial user will receive an Administrative Order. If over 30 days late, the industrial user will be considered in significant non-compliance with pretreatment regulations and will be published in the local paper.

2. Not later than fourteen (14) days following each date in the compliance schedule, the Industrial User shall submit a progress report to the District. This report must indicate whether or not the increment of progress was met on the date, the reason(s) for any delay, and what steps are being taken by the User to return to the schedule established. In no event shall more than (9) months elapse between such progress reports to the District. 3. Within 90 days following the final compliance date specified in Section I of this permit, the Industrial User shall submit a final compliance report. The Industrial User will be required to sample its wastewater for the pollutants specified in Section I, and report compliance. Any reasons for not complying and any steps being taken by the User to comply shall be part of the report. 4. The Industrial User shall report completion of its sampling/monitoring manhole if required. CAUTION: Violations of District Sewer Use Codes or the limitations and requirements of this permit will be enforced in accordance with the attached Enforcement Response Plan. PART IV STANDARD CONDITIONS The Industrial User shall comply with all the general prohibitive discharge standards in Title 7 of the District Code. 1. Right of Entry The Industrial User shall, after reasonable notification by the District, allow the District or its representatives, exhibiting proper credentials and identification, to enter upon the premises of the User, at all reasonable hours, for the purposes of inspection, sampling or records inspection. Reasonable hours in the context of inspection and sampling includes any time the Industrial User is operating any process which results in a process wastewater discharge to the District's sewage system. Complete facility inspection will be performed by District personnel at least twice per year. 2. Records Retention a. The Industrial User shall retain and preserve for no less than three (3) years, any records, books, documents, memoranda, reports, correspondence and any and all summaries thereof, relating to monitoring, sampling and chemical analyses made by or in behalf of the user in connection with its discharge. b. All records that pertain to matters that are the subject of special orders or any other enforcement or litigation activities brought by the District shall be retained and

preserved by the Industrial User until all enforcement activities have concluded and all periods of limitation with respect to any and all appeals have expired. 3. Confidential Information Except for data determined to be confidential under 7.04.510(H) of the District's Code, all reports required by this permit shall be available for public inspection at the office of the Sanitation District. 4. Recording of Results For each measurement or sample taken pursuant to the requirements of this permit, the user shall record the following information: a. The exact place, date, and time of sampling; b. The dates the analyses were performed; c. The person(s) who performed the analyses d. The analytical techniques or methods used; and e. The results of all required analyses. 5. Dilution No Industrial User shall increase the use of potable or process water or, in any way, attempt to dilute a discharge as a partial or complete substitute for adequate treatment to achieve compliance with the limitations contained in this permit. 6. Proper Disposal of Pretreatment Sludges and Spent Chemicals The disposal of sludges and spent chemicals generated shall be done in accordance with Section 405 of the Clean Water Act and Subtitles C and D of the Resource Conservation and Recovery Act.(RCRA) 7. Signatory Requirements All reports required by this permit shall be signed by a principal executive officer of the User, or his designee. 8. Revocation of Permit The permit issued to the Industrial User by the District may be revoked when, after inspection, monitoring or analysis it is determined that the discharge of wastewater to the sanitary sewer is in violation of Federal, State, or local laws, ordinances, or regulations. Additionally, falsification or intentional misrepresentation of data or statements pertaining to the permit application or any other required reporting form, shall be cause for permit revocation. 9. Limitation on Permit Transfer Wastewater discharge permits are issued to a specific user for a specific operation and are not assignable to another user or transferable to any other location without the prior written approval of the District. Sale of a User shall obligate the purchaser to seek prior written approval of the District for continued discharge to the sewage system. 10. Falsifying Information or Tampering with Monitoring Equipment

Knowingly making any false statement on any report or other document required by this permit or knowingly rendering any monitoring device or method inaccurate, may result in punishment under the criminal laws of the District, as well as being subjected to civil penalties and relief. 11. Modification or Revision of the Permit a. The terms and conditions of this permit may be subject to modification by the District at any time as limitations or requirements as identified in the District's Code, are modified or other just cause exists. b. This permit may also be modified to incorporate special conditions resulting from the issuance of a special order. c. The terms and conditions may be modified as a result of EPA promulgating a new federal pretreatment standard. d. Any permit modifications which result in new conditions in the permit shall include a reasonable time schedule for compliance of necessary modifications. 12. Duty to Reapply The District shall notify a User one hundred and eighty (180) days prior to the expiration of the User's Permit. Within ninety (90) days of the notification, the User shall reapply for reissuance of the permit on a form provided by the District. 13. Severability The provisions of this permit are severable, and if any provision of this permit, or the application of any provision of this permit to any circumstance, is held invalid, the application of such provision to other circumstances, and the remainder of this permit shall not be affected thereby. 14. Property Rights The issuance of this permit does not convey any property rights in either real or personal property, or any exclusive privileges, nor does it authorize any invasion of personal rights, nor any infringement of Federal, State or Local regulations. 15. Accidental or Slug Discharge The Industrial User shall notify the District immediately upon any accidental or slug discharge to the sanitary sewer as outlined in the Accidental Spill section of the District's Code (7.04.300). Formal written notification discussing circumstances and remedies shall be submitted to the District within 5 days of the occurrence. 16. New Wastewater or Pollutants The Industrial User shall notify the District prior to the introduction of new wastewater or pollutants or any substantial change in the volume or characteristics of the industrial processes. Formal written notification shall follow within 30 days of such introduction. 17. Upset Any upset experienced by the Industrial User for its treatment that places it in a temporary state of non-compliance with wastewater discharge limitations contained in this permit or other limitations specified in the District's Code shall be reported to the

District within 24 hours of first awareness of the commencement of the upset. A detailed report shall be filed within 5 days. 18. Reports All reports shall be submitted to the following address: Santa Cruz County Sanitation District 2750 Lode Street Santa Cruz, CA 95062 Attn: Jo Fleming 19. Hazardous Waste Permit holder shall report to the District all wastes which, if not discharged to the sewer system, would be considered hazardous waste according to 40 CFR 261. 20. Noncompliant Discharge Reporting If permit holder discovers any discharge which is non-compliant with local or federal discharge standards, then sampling intervals shall be increased to every 30 days until compliance has been attained. If the District has initiated the sampling, then the District may elect to sample every 30 days until the industry has attained compliance. All costs including lab costs shall be borne by the permit holder. PLEASE NOTE: When notified of the costs, the permit holder has 90 days to pay said costs or face permit revocation. 21. Treatment Plant Notification Any upset or period of noncompliance that the Industrial user even suspects shall cause an upset or pass-through at the City's treatment plant shall be reported immediately to the treatment plant at 420-6050 (day) or 420-6043 (night). Failure to do so will result in fines and liability of costs for damages to the treatment plant and the environment. 22. Enforcement Response Plan Noncompliance with District Codes, permit requirements and discharge limitations will be enforced in accordance with the attached enforcement response plan (District Code Section 7.04.545).

23. Applicable Civil and Criminal Penalties As written in Title 7 (Section 7.04.530) of the Santa Cruz County District Code: A. Public Nuisance. Any discharge in violation of the provisions of this chapter, or an order of the district, is a public nuisance. B. Civil remedies. If any person discharges sewage, industrial waste, or other waste into the treatment system in violation of the provisions of this chapter or any order of the board, the district counsel may commence an action for appropriate legal and/or equitable relief, in any appropriate court. The district counsel may also commence such an action for any violation of the pretreatment requirements contained in this chapter. The pretreatment requirements include discharge permit requirements. Such relief may include, but need not be limited to, injunctive relief and damages, whenever such relief is available to the district under the circumstances of the case. C. Violation Misdemeanor. Any person who intentionally violates or who violates any provision of this chapter or any regulations of the district is guilty of a misdemeanor and shall be punishable by a fine not to exceed one thousand dollars, imprisonment not to exceed thirty days, or both. Civil penalties for violations of Article II of this chapter shall not be less than one thousand dollars per day for each day that an industrial user is in violation of the district s pretreatment program. Fines assessed by any judgment made by the district as a result of noncompliance with district standards and discharge limits shall be paid to the District within fifteen days of the date of the assessment. D. Continuing Violations. Each day in which a violation occurs or continues to occur shall be a separate and distinct offense. (Ord. 85 7, 1995; Ord 72 1 (part), 1991, Ord. 64 3 (part), 1989: Ord. 3 6.14, 1973). 24. Response to Violations of District Code An industrial user is required to notify the Santa Cruz County Industrial Wastewater Pretreatment Program within 24-hours of the discovery of a violation of District Code (i.e., a spill or effluent limitation exceeded). In the event that there is an effluent limitation exceeded, the Industrial User must resample within 30-days. rev 3/04